Altria stock (NYSE:MO) remains largely unchanged after the business announced sales and profits lost in the release of its quarterly results. The company’s sales of $5.41 billion fell short of analysts’ expectations of $5.59 billion. Altria reported $1.28 in profits per share, which was a smaller shortfall (EPS). Analysts predicted $1.30 per share.
The top line was similarly down on a year-over-year basis, but profits were somewhat higher. It’s worth noting that, although narrowing its anticipated range, the business still anticipates full-year EPS to be higher in 2022 than the previous year. The business now expects EPS to decrease between $4.81 and $4.89. This is greater than the $4.61 recorded for the whole year in 2021 and represents a 4.5% increase on the low end.
Towards a Smoke-Free Future
The announcement of cooperation between Altria and JT Group was a highlight of the report (Japan Tobacco). The idea is to sell heat-not-burn cigarettes like Ploom from Japan Tobacco. The initial goal of this collaboration will be for Altria to seek regulatory clearance in the United States for Ploom.
This is Altria’s latest attempt to develop its oral tobacco business. To that end, the business stated that it was exercising its option and terminating its non-compete agreement with Juul. This will allow Altria to collaborate with another e-cigarette firm or revive its brand, which it abandoned in 2018 when it acquired a share in Juul.
Is Altria Stock a Good Investment?
Altria (NYSE:MO) was rated a “hold” by MarketBeat analysts before the earnings announcement. MO stock was on the increase in the first half of 2022. In reality, the stock was up 19% year to date in early May (prior to the first interest rate rise). The stock is practically unchanged after the results but still beats the wider market.
The stock has risen over its 50-day moving average and is now approaching its 200-day moving average. That seems to be a point of contention for the time being.
Can Altria make it? History implies that it may. Stocks normally rise in the aftermath of a midterm election. Even if it isn’t, you’ll get a sizable dividend to improve your overall return. The company now pays an annual dividend of $3.76 per share and has an 8.14% dividend yield. Furthermore, the firm has grown its dividend for the last 12 years in a row.
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